On January 1, 2018 the general ledger of acme fireworks included the following account balances. AccountsDebitCreditCash26,100Accounts Receivable48,200Allowance for Uncollectible5,200AccountsInventory21,000Land56,000Equipment20,000Accumulated Depreciation2,500Accounts Payable29,500Notes Payable (6%, due April 1,2019)60,000Common Stock45,000Retained Earnings29,100Totals$ 171,300S 171,300During January 2018, the following transactions occur:January Sold gift cards totaling $10,000. The cards are redeemable for merchandise withinone year of the purchase date.January Purchase additional inventory on account, $157,000.January Firework sales for the first half of the month total $145,000. All of these sales are on15account. The cost of the units sold is $78,800.January Receive Ss126,400 from customers on accounts receivable.23January Pay $100,000 to inventory suppliers on accounts payable.25JanuaryWrite off accounts receivable as uncollectible, $5,800.28January Firework sales for the second half of the month total $153,000. Sales include $16,000for cash and $137,000 on account. The cost of the units sold is S84,500.30January Pay cash for monthly salaries, $53,000.31Record the adjustment needed for the allowance for uncollectible accounts at 12/31. At the end of January,$21,000 of accounts receivable are past due, and the company estimates that 30% of these accounts willnot be collected. Of the remaining accounts receivable, the company estimates that 4% will not becollected.2.

A journal entry is the recording of a business transaction with debit and credit sides. The value of…

Record the adjustment needed for the allowance for uncollectible accounts at 12/31. At the end of January, S21,000 of accounts receivable are past due, and the company estimates that 30% of these accounts will not be collected. Of the remaining accounts receivable, the company estimates that 4% will not be collected.

Record the adjustment needed for the allowance for uncollectible accounts at 12/31. At the end of January, S21,000 of accounts receivable are past due, and the company estimates that 30% of these accounts will not be collected. Of the remaining accounts receivable, the company estimates that 4% will not be collected.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter8: Current And Contingent Liabilities

Section: Chapter Questions

Problem 61E: Recording Various Liabilities Glenview Hardware had the following transactions that produced...

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Category Prior Year Current Year Accounts payable 3,147.00 5,976.00 Accounts receivable 6,925.00 8,910.00 Accruals 5,635.00 6,187.00 Additional paid in capital 19,527.00 13,950.00 Cash ??? ??? Common Stock 2,850 2,850 COGS 22,974.00 18,270.00 Current portion long-term debt 500 500 Depreciation expense 975.00 976.00 Interest expense 1,278.00 1,155.00 Inventories 3,048.00 6,717.00 Long-term debt 16,569.00 22,919.00 Net fixed assets 75,968.00 73,882.00 Notes payable 4,045.00 6,584.00 Operating expenses (excl. depr.) 19,950 20,000 Retained earnings 35,870.00 34,759.00 Sales 46,360 45,347.00 Taxes 350 920 What is the firm's cash flow from operations? What is the firm's dividend payment in the current year? What is the firm's net income in the current year?
Category Prior Year Current Year Accounts payable 3,123.00 5,969.00 Accounts receivable 6,987.00 8,940.00 Accruals 5,642.00 6,108.00 Additional paid in capital 19,885.00 13,325.00 Cash ??? ??? Common Stock 2,850 2,850 COGS 22,986.00 18,120.00 Current portion long-term debt 500 500 Depreciation expense 1,035.00 988.00 Interest expense 1,290.00 1,167.00 Inventories 3,006.00 6,743.00 Long-term debt 16,856.00 22,001.00 Net fixed assets 75,521.00 74,000.00 Notes payable 4,072.00 6,540.00 Operating expenses (excl. depr.) 19,950 20,000 Retained earnings 35,244.00 34,874.00 Sales 46,360 45,055.00 Taxes 350 920 What is the firm's cash flow from financing?